The coalition intends to introduce its planned tax on heavily sweetened drinks later than previously envisaged. Union and SPD agreed during their budget talks on 11 November 2026 to postpone its introduction until early 2028, according to matching reports by the German Press Agency and ARD’s capital studio. A new tax on plastic packaging will not be levied in 2027 for the time being. The information comes from the governing parties’ parliamentary groups; no legislative change has yet been adopted.
Under the current draft law, the sugar tax was due to take effect on 1 July 2027. The CDU/CSU had argued for a later date to give drinks manufacturers more time to adjust their recipes. Instead of the two bands originally planned, the levy will reportedly have three bands based on sugar content in future. It would affect, among other things, fizzy drinks, iced teas, energy drinks and fruit juice drinks with added sugar.
The postponement changes the timetable for manufacturers and the federal government’s budget planning. Companies would have more time to prepare for the levy. At the same time, any revenue would come in later than envisaged in the current draft. The CDU/CSU and SPD had agreed the tax as part of their plan to stabilise contributions to statutory health insurance. The reports of the agreement do not specify how the three bands would be structured.
As for the plastics tax there is, for now, only a political agreement in principle. According to information from the German Press Agency, citing sources in both coalition parliamentary groups, it is not expected to be introduced in 2027. The The Federal Cabinet had not considered the proposal by 4 November 2026: it had been removed from the agenda. Deciding not to introduce the tax in 2027 does not rule out a levy in subsequent years.
The talks did not resolve how to fund a cut in electricity tax for everyone. According to information from the parliamentary groups, the coalition has so far been unable to identify offsetting savings. Cutting the tax to the European minimum would cost around €5.4 billion, according to the German Press Agency. The current relief applies to manufacturing, agriculture and forestry; private households do not benefit in the same way.
The coalition parties also agreed, according to the news agency, to reverse planned cuts to social policy measures. These include the immediate child benefit supplement for families on low incomes. The individual points must now be taken into parliamentary discussions. The Bundestag’s Budget Committee Budget Committee is due to consider the 2027 budget at its final adjustment meeting on 12 November 2026. The draft can still be amended there before the Bundestag decides on the budget.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).